New Report Says Europe Now Has More Than Half of All Open Bribery Investigations
TRACE's 9th annual Global Enforcement Report is a country-by-country look at government-led investigations into suspected bribery allegations, offering general counsel a better understanding of global trends.
March 05, 2019 at 10:21 AM
4 minute read
The latest report on global corruption enforcement from TRACE International shows the number of foreign bribery enforcement actions by the U.S. has increased by 50 percent over last year, while the number of investigations by Europe has grown so much that they now account for more than half of all foreign bribery probes.
TRACE's 9th annual Global Enforcement Report is a country-by-country look at government-led investigations into suspected bribery allegations, offering general counsel a better understanding of global trends. Annapolis, Maryland-based TRACE provides risk management solutions to more than 500 multinational companies.
The report says in 2018 the U.S. undertook a total of 25 enforcement actions, a notable increase over the 16 in the previous year, but less than the U.S. record of 31 enforcement actions set in 2016.
One takeaway for general counsel from this year's report, according to Robert Clark, TRACE's manager of legal research, is that “bribery is an issue with which the world remains highly engaged. The need for businesses to remain attentive to the possibility of corrupt activity within their ranks and by their representatives isn't decreasing.”
The report also shows the financial services industry remained the most heavily investigated by U.S. agencies, accounting for some 17 percent of all foreign bribery probes. While in other jurisdictions, the focus remained on the extractive industries, engineering and construction; and aerospace, defense and security. Outside the U.S., financial services accounted for only 6 percent of open investigations.
Clark said general counsel should understand that while some industries “have an outsize presence on the enforcement charts, the breadth of industries is wide, and it would be wrong to think that operating in a relatively 'clean' line of business would provide a guarantee of protection against scrutiny and punishment for misbehavior.”
Clark explained there are several possible reasons for the rise in the number of financial service cases, and “probably most obvious is the leading position the U.S. holds in the banking industry worldwide.”
Clark added that the U.S. can be considered a leader in enforcement, and “with the increasing degree of cross-border cooperation, it wouldn't be surprising to see the trend of increased financial services investigations take hold elsewhere.”
But at least one expert cautions against reading too much into the increased numbers. Jeffrey Klink, a former federal prosecutor who is now CEO of global risk consultancy Klink & Co. Inc. in Pittsburgh, said, “It doesn't surprise me, but it doesn't necessarily mean there's more corruption or bribery in that sector.”
Klink explained that perhaps the government had a bank case that led to other defendants and other cases. “It's just kind of where the leads are right now,” he said, and that could change next year.
Klink also said the number of open European investigations seemed high to him. “It's not shocking, but I'd be curious how many cases actually will be brought and resolved. I think the U.S. will wind up indicting and convicting more people.”
In fact, the report shows that from 1977 through 2018, the U.S. has the strongest enforcement record with 67 percent of all enforcement actions for bribery. Europe took enforcement actions in 27 percent of the cases. And in the past four years the number of non-U.S. enforcement actions has lagged considerably behind the U.S.
Other findings in the report include:
• In total, there were 303 open investigations of alleged bribery of foreign officials by Dec. 31, 2018. The U.S. was conducting 107 probes, followed by the U.K. with 47 and Germany with 25.
• The Asia Pacific region also showed an increase, with 9 percent of all ongoing investigations.
• Of 86 countries conducting investigations concerning alleged bribery of their own domestic officials, Brazil was conducting the most, followed by India, China and Nigeria.
• Of 43 countries where U.S.-based companies were under investigation for allegedly paying bribes, Chinese officials are the alleged recipients of bribes in 30 cases, followed by Brazil, India and Russia.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllFinancial Watchdog Alleges Walmart Forced Army of Gig-Worker Drivers to Receive Pay Through High-Fee Accounts
GC Pleads Guilty to Embezzling $7.4 Million From 3 Banks
Trump Mulls Big Changes to Banking Regulation, Unsettling the Industry
Trending Stories
- 1Decision of the Day: Judge Reduces $287M Jury Verdict Against Harley-Davidson in Wrongful Death Suit
- 2Kirkland to Covington: 2024's International Chart Toppers and Award Winners
- 3Decision of the Day: Judge Denies Summary Judgment Motions in Suit by Runner Injured in Brooklyn Bridge Park
- 4KISS, Profit Motive and Foreign Currency Contracts
- 512 Days of … Web Analytics
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250